Payment of Death Gratuity to a minor

NO.7/3/2013-P&PW (F)

Ministry of Personnel, PG & Pensions

Department of Pension & Pensioners' Welfare

3rd Floor, Lok Nayak Bhavan,

Khan Market,

New Delhi-11 0003

Dated the, 2.../ December, 2014.

OFFICE MEMORANDUM

Subject: Payment of Death Gratuity to a minor - regarding

In accordance with the existing instructions, the payment of a portion of death gratuity

could be made to the guardian, in the absence of a natural guardian, without production of a

guardianship certificate. As per the existing orders, an amount of RS.10,000/- (or the first

Rs.10,000/- where amount exceeds Rs.10,000/-)in favour of a minor could be made to his/her

guardian, in the absence of a natural guardian, without production of a formal guardianship

certificate but subject to production of an indemnity bond.

2. The above issue has been examined and in modification of the above orders, it has been

decided that the payment of death gratuity in respect of a minor to the extent of 20% or Rs.1.S0

lakh, whichever is less may be paid to his/her guardian, in the absence of natural guardian,

without the production of a formal guardianship certificate but subject to the production of an

indemnity bond with suitable sureties. The balance in excess of 20% or Rs.1.S0 lakhs, as the

case may be, would become payable on the production of a certificate of guardianship.

3. It is essential however, that there should be adequate prima facie grounds for making

payment as in paragraph 2 above, to the person claiming it. ~uch ground can exist only if he is

shown by a declaration to be a de facto guardian and his bona fides have been ascertained. Even

if a guardian has not yet been appointed by the Court, if the minor and his property are in the

custody of some person, such person is in law a de facto guardian. The authorities making the

payment, should, therefore, require the person who comes forward to claim payment on behalf of

the minor, to satisfy themselves by a form that he is in charge of the property of the minor and is looking after it or that, if the minor has no property other than the gratuity, the minor is in his

custody and care. The form so to be produced is in addition to the indemnity bond with suitable

sureties. .

4. The indemnity bond which is required to be produced by a de-facto guardian of minor(s)

for payment of retirement/death gratuity to the extent of RS.1.S0 lakh or 20% whichever is less

should be executed in the form appended below.

5. It has been decided that the stamp duty payable on the indemnity bond will be borne by

the Government. The indemnity bond, should, therefore, be executed on any durable plain paper.

6. The indemnity bond should be signed by the obligor and the surety/sureties or their

respective attorneys appointed by power(s) of attorney. The indemnity bond on behalf of the

President should be accepted by an officer duly authorized under Article 229(1) of the

Constitution.

7. In so far as the persons serving in the Indian Audit and Accounts Department are

concerned, these orders have been issued after consultation with the Comptroller and Auditor

General of India.

8 This issues is with the concurrence of Department of Expenditure vide their ID note No.

359/EV/2014 dated 04.07.2014.

9. Hindi version will follow.

(Tripti· P Ghosh)

Director

Tel.No.24624802

 INDEMNITY BOND

KNOW ALL MEN by these presents that we (a) .

(b) the widow/son/brother, etc., of (c) deceased, resident of

.................................... of (hereinafter called "the Obligor") and (d) .

son/wife/daughter of resident of and son/wife/daughter

of. ........................... Resident of the sureties for and on behalf of the Obligor

(hereinafter called "the Sureties") are held firmly bound to the President ofIndia (hereinafter called"

the Government" ) in the sum of Rs (Rupees only) well and truly to

be paid to the Government on demand and without a demur for which payment we bind ourselves

and our respective heirs, executors, administrators, legal representatives, successors and assigns by

these presents.

Signed this day of two thousand and

WHEREAS (c) was at the time of his death in the employment of the

Government/receiving a pension at the rate of Rs (Rupees only) per

month from the Government.

AND WHEREAS the said (c) died on the day of 20 and

there was due to him at the time of his death the sum of Rs (Rupees

.................................... only) for and towards share of his minor son/daughter in the death/retirement

gratuity.

AND WHEREAS the Obligor claims to be entitled to the said sum as de facto guardian of the

minor son/daughter of the said (c) but has not obtained till the date of these presents

the certificate of guardianship from any competent Court of Law in respect of the said minor(s).

AND WHEREAS the Obligor has satisfied the (e) that he/she is entitled to the

aforesaid sum and that it would cause undue delay and hardship if the Obligor be required to

produce the certificate of guardianship from the competent Court of Law before payment to him of

the said sum ofRs .

AND WHEREAS the Government has no objection to the payment of the said sum to the Obligor

but under Government Rules and Orders, it is necessary for the Obligor to first execute a bond with

one surety/two sureties to indemnify the Government against all claims to the amount so due as

aforesaid to the said (c) before the said sum can be paid to the Obligor.

AND WHEREAS the Obligor and at his/her request the surety/sureties have agreed to execute the

bond in the terms and manner hereinafter contained.

NOW THE CONDITIQN OF THIS BOND is such that if after payment has been made to the

Obligor, the Obligor and/or the surety/sureties shall in the event of a claim being made by any other

person against the Government with respect to the aforesaid sum of Rs. refund to the Government

the said sum of Rs and shall otherwise indemnify and keep the Government

harmless and indemnified against and from all liabilities in respect of the aforesaid sum and all costs

incurred in consequence of the claim thereto THEN the above written bond or obligation shall be

void and of no effect but otherwise it shall remain in full force, effect and virtue.· AND THESE PRESENTS ALSO WITNESS that the liability of the sureties hereunder shall not

be impaired or discharged by reason of time being granted by or any forbearance act or omission of

the Government whether with or without the knowledge or consent of the surety/sureties in respect

of or in relation to the obligations or conditions to be performed or discharged by the Obligor or by

any other method or thing whatsoever which under the law relating to sureties, shall but for this

provision have the effect of so relating the surety/sureties from such liability nor shall it be necessary

for the Government to sue the Obligor before suing the surety/sureties or either of them for the

amount due hereunder, and the Government agrees to bear the stamp duty, if any, chargeable on

these presents.

IN WITNESS WHEREOF the Obligor and the surety/sureties hereto have set and subscribed their

respective hands hereunto on the day, month and year above written.

Signed by the above named 'Obligor' in the presence of